The contract extension and the immediate deployment of its new Joy 12CM30 continuous miner continues to demonstrate Delta SBD’s capability in this type of work and reinforces its strategy to provide new “fit for purpose” equipment to underpin the execution of these projects, chief executive Stephen Bizzaca said.

“More significantly, this will be our first development contract outside the Illawarra where we will be utilising one of the company’s continuous miners,” he said.

“The contract extension also includes options for a further term extension, as well as personnel for a third development unit.”

Delta SBD has experience in the development of longwall gateroads and main headings development, with work currently being undertaken on two development contracts at BHP Billiton’s Appin colliery.

Last December Delta SBD announced is fit-for-purpose fleet strategy to position itself for future contract work with the acquisition of extra coal driveage development equipment.

The equipment includes a Caterpillar continuous miner, a Joy feeder breaker, four Cat ram cars, two VLI personnel transporters, a Waratah shuttle car, two Ampcontrol substations, two Flaktwoods auxiliary ventilation fans, a Capricorn Mining pipe trailer, two Sandvik load haul dump vehicles, a VLI Brumby tool carrier and two Ampcontrol distribution control boxes.

Bizzaca said: “The nature and quality of our equipment is paramount to being a successful services company and I am delighted we have been able to secure these valuable additions to our fleet in a market where roadway development equipment of this nature is in high demand.

“The acquisition demonstrates our focus on continually expanding our fit-for-purpose equipment to ensure we are in a strong position to respond to demand from clients as new mines come online and existing clients look to increase production.

“The forecast for growth across the coal industry remains positive which is driving production and expansion projects across Australia – consequently we are continuing to review a range of business opportunities for Delta SBD.”

Delta SBD currently operates six driveage development units for clients across the country. This additional equipment ensures the company has the capability to provide two complete development units, it said.

Delta SBD said it had put in place appropriate external funding arrangements to finance the equipment.